1 JOB EVALUATION METHODS
Reported by: Chona H. Torres IR 212 10 December 2013
2 TWO MAIN CATEGORIES of JOB EVALUATION METHODS
QUALITATIVE METHOD (Non-Analytical) QUANTITATIVE METHOD (Analytical) Basic, simple, fast and easy to understand Complex Inexpensive Time consuming Can be very subjective and bias (due to lack of standards for ordering and comparing jobs) Not very comprehensible TWO APPROACHES of JOB EVALUATION METHODS Whole Job Evaluation Specific Job Factor Evaluation Analyze and compare jobs in their entirety Jobs are arranged in order based on a comparison of jobs from one another Break down jobs into their components parts or compensable factor EXAMPLES: 1. RANKING METHOD EXAMPLES: 1. FACTOR COMPARISON 2. PAIRED COMPARISON 2. POINT RATING 3. CLASSIFICATION METHOD 3. HAY or PROFILING METHOD
3 QUALITATIVE METHOD (Non-Analytical)
ADVANTAGES DISADVANTAGES Simple and relatively easy to follow Prone to sex discrimination because the whole jobs are being compared (rather than scores on components of jobs) Jobs are compared with each other to get their relative worth Can be very subjective which could lead to complaints and grievances Highly preferred by those without training in the use of analytical methods Writing grade descriptions can be difficult, likewise compensable factors are not weighted (so one cannot see clearly the importance given to each factor) Useful in organizations with few jobs
4 QUANTITATIVE METHOD (Analytical)
ADVANTAGES DISADVANTAGES More objective in terms of approach and has well-defined and measurable factors Quite rigorous and time consuming, expensive Results yielded are not only valid and reliable but defensible in court The use of monetary values are not constant figures because they fluctuate during changes in economic conditions, inflation and depression periods Factor descriptions can be readily available from internet sources Flexible and allows organizations to choose factors they value most
5 (Quantitative Method)
HAY METHOD (Quantitative Method) Developed by Edward N. Hay in the early 1940’s Also called PROFILING METHOD because job profiles are obtained at the end of the job evaluation Most widely used process for the evaluation of management, professional and technical jobs in the world Guide Charts are used to evaluate each dimension Each dimension is scored based on Duration, Intensity and Frequency
6 (Quantitative Method)
HAY METHOD (Quantitative Method) Generally, has three (3) main “compensable factors” (represents how much the job is worth in terms of monetary value) However, a fourth factor has been added so lower jobs can be evaluated KNOW-HOW (KH) PROBLEM SOLVING (PS) ACCOUNTABILITY (AC) Sum total of knowledge and skills developed by job experience and training which a job holder needs to perform the job in a fully acceptable way. The level of complexity of thinking involved when the job holder applies Know-How to get the job done. The answerability for an action and for the consequences of that action. WORKING CONDITIONS Evaluates the environment in which the job is performed
7 (Quantitative Method)
HAY METHOD (Quantitative Method) KNOW-HOW FACTOR has three (3) dimensions Depth and Range of Technical Know-How In assessing this factor, consideration must be given to range of technical knowledge and the depth of understanding required. Planning, Organizing and Controlling The term “management” is used in general sense attributed to this factor, since all jobs require some form of “management” skills. Communication and Influencing Skills Measures the requirements in the job for working with, and through others to achieve the position’s end results. Face to face skills needed for various relationship with other people.
8 (Quantitative Method)
HAY METHOD (Quantitative Method) PROBLEM SOLVING FACTOR has two (2) dimensions Thinking Environment Concerned with the degree of guidance in approaching problems. Measured by the presence or absence of constraints affecting how problems are addressed. Thinking Challenge Concerned with the degree of creative or original thought required to resolve problems. It assesses the complexity of the problem and the extent to which it lies within experience.
9 (Quantitative Method)
HAY METHOD (Quantitative Method) ACCOUNTABILITY FACTOR has three (3) dimensions Freedom To Act Concerned with the presence of discretion in taking action. The level of the job in the organization may limit the authority for taking action. Magnitude Indicated by the general size of the area(s) most clearly affected by the job. Refers to the departmental, divisional or sectional activities affected by the job or to some aspect of those activities. Impacts REMOTE – informational, recording or incidental services for use by others in relation to some important end result. CONTRIBUTORY – interpretative, advisory or facilitating services for use by others in taking action. SHARED – jointly accountable with another/others (except own subordinates and superiors) within or outside the organizational unit, in taking action
10 (Quantitative Method)
HAY METHOD (Quantitative Method) WORKING CONDITIONS FACTOR has four (4) dimensions Physical Effort Takes into account of effort by or strain on any part of the body as a result of activities such as lifting, bending, stretching, repeated execution of movements and working in awkward or uncomfortable positions. Physical Environment This covers for example dust, dirt, heat, cold, fumes, steam, moisture, noise and direct physical contact with substances unpleasant to the touch. Sensory Attention Jobs which may require concentrated levels of sensory attention (i.e. seeing, hearing, smelling, tasting, touching) during the work process. Mental Stress Exposure to factors inherent in the work process or environment, which increase the risk of such as tension or anxiety.
11 ADVANTAGES OF THE HAY METHOD
Enables companies to base pay structures on a neutral and objective standard so they are both fair to the employees and legally defensible Provides a way to quantify the level of difficulty involved (e.g. compare the work environment of a mechanic to an accountant) Has the advantage of quantifying the relative value of extra responsibility
12 DISADVANTAGES OF THE HAY METHOD
Two people who hold similar positions at the same company can be paid very differently, raising questions of pay equity and fairness. Does not distinguish between different types of know-how, so a job requiring extensive technical experience and a job requiring formal education could both be rated as needing the same amount of know-how.